Monographic course on Internet Law at CEF.- Center for Financial Studies Know the legal responsibilities that exist in the digital environment to protect your company Monographic course on Internet Law at CEF.- Center for Financial Studies Know the legal responsibilities that exist in the digital environment to protect your company , When home confinement was decreed in March, one of the few types of businesses that could remain open and where you could continue to go shopping were kiosks. And, although it was not uncommon to find the occasional queue of people waiting to buy the newspaper, especially on Sundays, the truth is that the sales data were not particularly good. Sales fell, but so did investment from advertisers. Buying the Sunday paper and turning the pages of Sunday supplements, usually one of the destinations of print advertising, was somewhat unsettling when viewed from an advertising point of view.
The supplements were finer than ever and were published, in some cases, without any advertising. Advertising investment in traditional media was the one that suffered the most during the start of the pandemic (there were those marathons of consumption of hours of television that were difficult to monetize for the networks) and the paper press was already dragging a complicated situation from previous times.
The coronavirus crisis only made that situation more complex and accentuated. Therefore, it was to be expected almost from minute one that this situation would end up becoming another economic burden for paper media. Newspapers have been experiencing losses in revenue, readership and circulation since the economic crisis 10 years ago. The coronavirus crisis has been another blow to its results. Only in Spain and only the largest groups have lost hundreds of millions of euros in these months. About 300 million euros In total, newspapers have lost at least 294 million euros so far this year. And those are only partial data. The estimate of this figure is based on the amounts they have lost so far in 2020 in terms of public economic results Vocento, Prisa and Unidad Editorial.
These three large groups, responsible for some of the newspapers with the largest circulation, are listed companies and, therefore, must present quarterly results. Starting from these accounts presented, in Economía Digital they have calculated how much they have lost from one year to the next. Although these headers are the only ones for which public data is available, the losses of paper cannot be limited to what has happened to their accounts. It could almost be said that it is certain that the other newspapers in Spain are closing this 2020 with setbacks in income. There are no economic results, but there are news from ERTEs and other cost-cutting mechanisms. The reasons for the fall Why have paper headlines in Spain lost so much money? On the one hand, there is the drop in sales of copies. Only in March, and according to the data they contribute to the analysis, the newspapers saw sales fall by 30%, even with their Sunday numbers (the most popular in terms of distribution). On the other hand, there has been a kind of collapse in the advertising market, which reduced their investment in traditional media. Both problems – the drop in paper sales and the loss of advertising revenue – were already occurring before the coronavirus crisis.
The pandemic made the situation more complicated and forced paper media to accelerate its migration strategy to new formats for access to content. The headlines of the large newspapers have been trying to establish payment models since last year. El País was, in fact, in the process of launching the format when the coronavirus crisis broke out, forcing it to delay the landing of its paywall . But even though the media is launching these formats and achieving some success (despite subscription fatigue), the revenue they are making is still not enough to cover all of the revenue they are losing elsewhere.